You needn’t always look to the city for property investment. Rural real estate can sometimes be an even greater investment if you know what you’re doing.
Like anything you need to know the tricks of the trade to make a decent profit at it and in this article, I’m going to share 5 tips to help you out.
Here are just a few factors to consider.
#1 Add value with a view
An impressive view can boost a property’s value considerably. Houses on hills can sell for double, whilst sea views can boost value by up to 80%.
Such properties are likely to only appreciate and demand will always remain high. Companies such as
Such properties are likely to only appreciate and demand will always remain high. Companies such as Banner Elk real estate specializing in mountaintop properties for those wanting an impressive mountainside view.
Other agencies specialize wholly in coastal properties with sea views.
#2 Research local services
A property may not be so popular if there aren’t services nearby such as shops, banks, train stations or post offices. A nearby main road can also increase value.
However, you don’t want to buy a property situated directly by a motorway – both air and noise pollution are likely to be deterrents and can devalue a home by 15%. Rural properties can also be targets of burglary in some areas – it’s worth researching local crime rates using sites such as Neighbourhood Scout.
#3 A renovator’s dream
Buying rural has one big perk and that is the option to renovate more freely. Without neighbors, you may not have to worry about invading people’s privacy or blocking out the sun to other people’s garden with an extension.
Outhouses and barns meanwhile can make excellent conversions. In some cases, you may even be able to transform them into separate properties of their own.
You should still seek planning permission in all cases as some land may be protected to preserve wildlife or natural beauty. In other cases, the building may be old and therefore need to be preserved.
#4 Beware of future developments
When buying a new rural property, make sure that there aren’t future plans to build on land nearby. The charm of being rural will be lost if the house suddenly becomes part of a council estate.
A beautiful view may be lost and the neighborhood may become less peaceful. Find out which developments are scheduled for the near future so that you know what you’re getting yourself into.
#5 Renting is a risk
If you’ve got plans to buy a rural property to rent, consider the type of tenants who will be living there. Young adults are the most popular demographic for those renting and are likely to want easy commuting and nearby social opportunities. As a result, rural properties can often be ill-suited.
A better option may be to rent a rural property as a guest-house for holidaymakers. This may only be applicable in tourist areas but could earn you a lot more than renting.
Another option could be to turn the property into a hotel or b&b and rent out rooms. This would require you to live there or provide staffing and is probably the most difficult route, although the most profitable too.
So are you investing in rural property areas? I would love to hear more about how it working out with you. Share your thoughts and comment below.